Category: Power

If Central government’s thermal power plants offers a 25% discount on fixed cost of the power supplied during the lockdown period, their effective post-tax return on equity (RoE) in FY21 could drop to 12.6% from their regulated RoE of 15.5%, according to analysts at India Ratings. In the wake of the coronavirus outbreak, the Union […]

JSW Energy is keen to seize opportunities thrown up by the recent reform measures taken by the government, and the improvement in economic activities with partial relaxations of lockdown restrictions. Prashant Jain, joint managing director & CEO of JSW Energy, said in an exclusive interview with Vikas Srivastava, that measures announced by the government such […]

Tata Power Reported Q4FY20 operational performance (Ebitda at Rs 1,800 crore) in line, whereas 50% PAT outperformance is due to lower tax and a higher JV contribution. The Indonesian mining amendment greatly abates the profitability overhang. Management outlined 1.5x D/E and Rs 25,000 crore in debt by end-FY21 (2.2x/Rs 44,000 crore currently), which is aggressive, […]

Moody’s Investors Service estimates that though the Rs 90,000 loan for discoms carry low risk because of the state guarantees, it will increase the leverage of PFC and REC if they are booked as on-balance-sheet loans. The agency expects PFC’s tangible common equity/tangible managed asset (TCE ratio) to fall by about 90 basis points if […]

Power plants which are taking no actions to install equipment to reduce emissions should face punitive action from the government, environment experts said. A report released by the Centre for Science and Environment (CSE) on Thursday suggested that the government should come up with a mechanism which would incentivise the power plants that invest in […]

India’s top oil and gas producer ONGC and country’s biggest electricity generator NTPC have signed a preliminary agreement to set up a joint venture company for renewable energy projects. Oil and Natural Gas Corp (ONGC) and NTPC Ltd “entered into a memorandum of understanding (MoU) on May 21, 2020 in New Delhi to formalize this […]

Acme Solar has unilaterally terminated the power purchase agreements (PPAs) signed with the Solar Energy Corporation of India (SECI) for solar projects scheduled to sell electricity at Rs 2.44/unit — the lowest-ever solar tariff discovered. The company said that the PPA was being cancelled because of force majeure events such as the impact of the […]

Power sector lenders PFC and REC will use the Rs 90,000-crore loan amount allotted to state-run power distribution companies (discoms) to directly pay power generators (gencos) which owe money from these entities. “The payment shall be released directly to CPSU gencos /RE rencos/IPPs/ CPSU transcos based on authorisation of discoms in this regard,” policy notes […]

The government’s Rs 90,000 crore liquidity infusion into cash-starved power distribution firms is a breather for generating companies and the move will help 9.4 GW private thermal coal capacities from defaulting post moratorium, CRISIL Ratings said on Wednesday. The move would help clear a chunk of discoms’ obligations to generation companies (gencos), it said in […]

India added about 715 mega watt (MW) of utility scale solar capacity in January-March 2020, down 67 per cent from 2163 MW during the same period last year, a report said. According to clean energy consultancy Bridge To India, the country added 328 MW of utility scale wind capacity in the quarter ended March, which […]

Tata Power on Tuesday posted a two-fold jump in its consolidated net profit to Rs 475 crore in the January-March quarter compared to the year-ago period. The company’s consolidated net profit was Rs 172 crore in the quarter ended on March 31, 2019, a company statement said.

States will likely have to reduce aggregate technical and commercial (AT&C) losses of their power distribution companies (discoms) to 15%, allow open access to industrial consumers to procure electricity from sources of their own choice and implement direct cash transfers to provide subsidy to eligible power consumers to avail a part of the increased net […]